SRC-MKV S.B. 1488 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1488
77R5119 MCK-DBy: Haywood
Finance
4/25/2001
As Filed


DIGEST AND PURPOSE 

Many private companies as well as state and federal agencies have adopted
pay-for-performance (PFP) compensation systems.  PFP systems are designed
to increase productivity by recognizing the best performers and
compensating them accordingly.  PFP furthers performance-based management
by linking the goals of the organization to those of the individual, whose
role is to contribute to the defined performance objectives.  Through PFP
planning, individuals participate cooperatively with the organization to
design performance objectives and define mutually beneficial outcomes.  As
proposed, S.B. 1488  requires each state agency to adopt policies to ensure
that individual performance expectations are linked to goals in the
agency's strategic plans.  The bill also requires a task force to be
created to evaluate, compare, and contrast the benefits of the state's
current merit system with a PFP system of compensation. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 659K, Government Code, by adding Sections
659.2551 and 659.2552, as follows: 

Sec. 659.2551.  PERFORMANCE LINKED TO AGENCY GOALS.  Requires each state
agency to adopt policies to ensure that an employee's performance
expectations are linked to the goals in the agency's strategic plan adopted
under Chapter 2056.   

Sec. 659.2552.  TASK FORCE TO EVALUATE EMPLOYEE COMPENSATION SYSTEMS.  (a)
Sets forth the composition of the task force. 

(b) Requires the representative of the State Auditor's Office to serve as
presiding officer of the task force. 

(c) Requires the task force to evaluate the strengths and weaknesses of the
current merit increase system for compensating employees, identify
statewide opportunities for funding pay-for-performance policies and
practices to supplement current efforts at recruiting and retaining
employees, and provide recommendations on those matters to the legislature
not later than January 1, 2003. 

(d) Provides that a member of the task force serves at the will of the
appointing entity. 

SECTION 2.  Effective date: September 1, 2001.